• $9.01 million in receipts from customers, up 20% from previous quarter
• $2 million in unsecured loan notes secured for funding
• Recreational cannabis unit Peak Processing Solutions achieves $6.25 million in receipts, up 20%
• Pharmaceutical cannabis unit Althea stabilizes supply chain after stock outages

Althea Group Holdings (ASX:AGH) has released its quarterly results and operational update for the period ending 31 December 2024. The company recorded $9.01 million in receipts from customers for the quarter, an increase of 20% from the previous quarter. Receipts from customers for the first half of FY25 reached $16.53 million. Net cash used in operating activities for the quarter was $1.19 million, while for the first half of FY25 it was $896,000. The company secured $2 million in funding through an unsecured loan notes placement during the quarter, strengthening its financial position.Althea's recreational cannabis unit, Peak Processing Solutions, achieved $6.25 million in receipts from customers, an increase of 20% from the previous corresponding period. The company's pharmaceutical cannabis unit, Althea, achieved $2.75 million in cash receipts, an increase of 19% from the previous corresponding period.Althea continues to recover from prolonged stock outages that have impacted the business since late 2023. The company has also conducted a strategic review of its business, leading to leadership changes, a shift in focus, and $1.4 million in annualized cost savings.Given the various factors outlined, Althea's FY25 market guidance is under review. However, the company's Peak operations in Canada and the US continue to perform strongly, driven by growing demand for cannabis beverages and ongoing operational efficiencies.

While cash receipts across the business remain stable or have improved from the previous quarter, sales have fallen short of budget expectations. As a result, the FY25 market guidance is under review.